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On July 1, 2017, Sam loaned his son $150,000 to purchase a new house. The loan is for ten years with no interest. The son

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On July 1, 2017, Sam loaned his son $150,000 to purchase a new house. The loan is for ten years with no interest. The son has no investment income. If the applicable federal rate (AFR) is 10%, what amount of imputed interest will Sam report in gross income in 2017? a. S b. 15,000 25. c. $7,500 d. $2,500 e. None of the above

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